Based on a 5% increase in sales, Infosys is expected to announce a 10–15% YoY increase in net profit for the September quarter. The acquisition of In-Tech would help with the growth. On a sequential basis, revenue in constant currency is anticipated to surpass that of tier 1 peers. While maintaining its margin guidance, the Salil Parekh-led IT firm may potentially raise its sales guidance for the fiscal year. The margin may increase for the quarter, but only little.
Everyone will be watching the interim dividend and the commentary on the demand outlook for FY25, particularly with regard to discretionary spending. Investors will be keeping an eye on deal TCVs and pipeline, margin levers, attrition, and pricing today.
"Evidence of growth recovery, deal TCVs, and management commentary would still be needed to lock-in the growth recovery narrative, even though investors are now much more optimistic about the sector," stated Kumar Rakesh, Analyst-IT & Auto at BNP Paribas.
Based on a 4.8 percent YoY increase in revenue at Rs 40,867 crore, PhillipCapital anticipates that Infosys will report a 10.2 percent YoY increase in net profit at Rs 6,844.40 crore. The EBIT margin is predicted to grow by 20 basis points to 21.4 percent year over year. At $4,877 million, dollar revenue is expected to increase 3.4 percent year over year or 3.5 percent quarter over quarter. Due to the continuing ramping up of big projects, such as in Q1, in-tech integration, and the rebound in the BFSI vertical, CC's revenue grew by 2.6% on a quarterly basis.
Strong growth and operational efficiency are expected to enable margins expand by 30 basis points (Project Maximus). With a solid first quarter and a low ask rate in the second, we anticipate that Infosys would raise its FY25 growth guidance to 4-5 percent YoY in CC from 3-4 percent. Phillip Capital stated, "We anticipate that EBIT margin guidance will remain stable at 20–22%."
According to Sharekhan, Infosys's profit increased by 10.4% to Rs 6,856 crore. Sales are up 5.1% year over year to Rs 40,987 crore. The operating profit margin is up 10% year over year at 24.3%.
With 70 bps cross-currency tailwinds, Infosys is predicted to post revenue increase of 3.2 percent in CC terms QoQ, which would result in a reported rise of 3.9 percent QoQ supported by the BFSI rebound.
Emkay Global anticipates that Infosys will maintain its EBIT margin guidance of 20–22 percent while increasing its revenue growth guidance to 3.5–4.5 percent CC YoY (now 3–4%) for FY25.
"With the Intech acquisition contributing 1%, we anticipate revenue growth of 3.2% in CC terms and 3.6% in USD terms on a quarterly basis. Operating leverage and project maximus are expected to deliver a 35 bp QoQ improvement in the EBIT margin. Nuvama stated, "We believe Infosys will maintain margins of 20–22 percent for FY25 and upgrade revenue growth guidance to 3–5 percent CC YoY (from 3–4 percent)."
According to this brokerage, Infosys' Q2 profit increased 15.2% year over year to Rs 7,154 crore. Sales are expected to increase 5.2% to Rs 41,023 crore.
